Angola deal lets Leviev raise diamond price – report


Bloomberg reports that Lev Leviev will be able to sell Angolan diamonds on world markets.

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Lev Leviev, the billionaire diamond dealer who controls Africa-Israel Investments Ltd. (TASE:AFIL), has closed a deal in Angola that will enable him to charge up to 50% more for the diamonds he sells, according to a report in Bloomberg citing ” people with knowledge of the agreement” who asked not to be identified.

Bloomberg says that, according to two of its sources, the deal may allow Leviev to raise prices by as much as 50%. “Stones from Catoca, the world’s fourth-biggest mine, are sold through Angola’s Sodiam state marketing unit to preferred buyers at an average of about $100 a carat, while they can fetch about $150 on the world diamond market, ” the sources told Bloomberg.

Catoca : Angola. The Catoca mine in Angola is owned by a consortium that includes Russia’s Alrosa,    Brazil’s Odebrecht,    Israel’s Daumonty and Angola’s state-owned mining company. The mine went into production in 1997 and is expected to produce 60 million carats over its lifetime,    about 35% of which are gem quality. Production in 2009 totaled 7.5 million carats.

A spokeswoman for Africa-Israel declined to comment on the report, while Bloomberg writes that Antonio Freitas, a spokesman for Angola’s state-owned diamond company Endiama EP in Luanda, and Ari de Almeida, commercial director for Sodiam, didn’t respond to e-mailed requests for comment.

Angola, the fourth-biggest diamond producing country by value, with sales of more than $1 billion in 2012, is looking to soften restrictions that deter exploration and development after producers abandoned the country during the global financial crisis.

Published by Globes [online], Israel business news – www.globes-online.com 

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